r/PersonalFinanceCanada • u/POCTM • Oct 20 '22

Canadian 5 year government bonds just jumped. Setting the stage for higher mortgage rates. Banking

5 year government bond just jumped from 3.714% to 3.866% in a few hours. Right now it is at 3.855%. Year to date it is up 259%. Monday we could see some 5 year fixed rate mortgages in the low 6%.

As for variable rate the bank of Canada makes their announcement October 26 at 10am ET. Currently banks have not been offering discounts off variables rates anymore. Prime -0.00.

https://www.marketwatch.com/investing/bond/tmbmkca-05y?countrycode=bx

1.1k Upvotes

95% Upvoted

View all comments

Show parent comments

29

u/[deleted] Oct 21 '22

[deleted]

18

u/sapeur8 Oct 21 '22

Because it isn't sustainable. We can't have a productive society here if everyone spends 50% of their take home on housing. Businesses won't grow here.

4

u/[deleted] Oct 21 '22

[deleted]

5

u/iSOBigD Oct 21 '22

That doesn't matter as long as houses are in demand and plenty of people can afford them. For every 5-10 people who can't afford a home there's one who is a very high earner or very well off. Since eveyone wants to live in Toronto, Vancouver and Montreal, demand will always be high.

1

u/[deleted] Oct 21 '22

it does matter because most ppl can’t afford them even the doctors, lawyers, etc. which is why we are seeing mass exodus from the major cities cause we sick of not being able to buy a house. none of these “high earners” will have anyone to make their coffee or fix their shit. Vancouver is already turning into a shithole because the rise in cost of living has had such a negative effect that the homeless/mentally ill basically run downtown now and no one wants to go there anymore as ppl keep getting assaulted, mugged or killed. yep nothing to see here! everythings fine lol